THE ROAD TO TRANSFORMATION
2021 ANNUAL REPORT
- Bahrain
- Kuwait
- UAE
- UK
- Egypt
- Iraq
- Oman
- Libya
GROUP MISSION STATEMENT
To create an unrivalled ability to meet customer needs, provide fulfilment and development for our staff and deliver outstanding shareholder value
Objectives
- To maximise shareholder value on a sustainable basis.
- To maintain the highest international standards of corporate governance and regulatory compliance.
- To maintain solid capital adequacy and liquidity ratios.
- To treat clients fairly and be their preferred banking partner.
- To ensure technological, digital and data competitiveness across all functions
- To entrench a disciplined risk and cost management culture.
- To develop a cross-cultural meritocratic management structure.
- To optimise staff development through business driven training and profit related incentive.
- To contribute to the social, economic and environmental advancement of our host countries.
Value Added Time = NPAT
AUB Operating Divisions
Corporate Banking
This division covers all the Bank's capital-intensive activities in risk asset generation and funding regionally and internationally.
- Corporate and Trade Finance
- Commercial Property Finance
- Residential Property Finance
- Acquisition and Structured Finance
- Correspondent Banking
- Shari'a Compliant Banking
PRIVATE BANKING & WEALTH MANAGEMENT
This division generally includes all the low capital-intensive sectors of business, offering wealth management services to individuals and institutions based on perfomrance and a balanced product mix.
- Private Banking and Asset Management
- Real Estate Fund Management
- Shari'a Compliant Banking
RETAIL BANKING
This division covers both conventional and Shari'a Compliant individual customers' deposits, loans, overdrafts, credit cards and residential mortgages.
TREASURY AND INVESTMENTS
This division provides money market, trading and treasury services and is also responsible for the management of the Group’s funding.
- Money Market Services
- Foreign Exchange Services
- Hedging and Trading Solutions
- Structured Products
- Investment Management
- Shari'a Compliant Treasury Products
RISK MANAGEMENT
This division is responsible for the identification, assessment and ongoing control of all material risks that could affect the Group’s business & operations.
- Risk Management
- Legal
- Compliance
AUDIT
This division is an integral part of the control environment of the Group. The role of audit is to understand the key risks of the Bank and examine and evaluate the adequency and effectiveness of the system of risk management and internal control in order to identify legal, regulatory or policy shortcomings.
Support Services
These divisions provide back end banking services to support ongoing business activities of the Group, as well as supporting the Group’s expansion through mergers and acquisitions.
- Finance
- Strategic Development
- Information Technology
- Operations
- Services
- Human Resources
Transformation
in action: techonology
Using a.i. For a smarter
in action: techonology
Using a.i. For a smarter
banking experience
Address customers’
banking requirements
24/7
The first bank in Bahrain to
integrate its system with an AI
supported
chatting
service
Transformation
in action: techonology
Using a.i. For a smarter
in action: techonology
Using a.i. For a smarter
banking experience
Address customers’
banking requirements
24/7
The first bank in Bahrain to
integrate its system with an AI
supported
chatting
service
Transformation
in action: techonology
Using a.i. For a smarter
in action: techonology
Using a.i. For a smarter
banking experience
Address customers’
banking requirements
24/7
The first bank in Bahrain to
integrate its system with an AI
supported
chatting
service
Transformation
in action: techonology
Using a.i. For a smarter
in action: techonology
Using a.i. For a smarter
banking experience
Address customers’
banking requirements
24/7
The first bank in Bahrain to
integrate its system with an AI
supported
chatting
service
As a premier regional bank present in 8 countries in the Middle East and United Kingdom, we provide our clients with international growth opportunities. Our network is constantly growing, and today we are proud to manage subsidiaries and associates across 8 countries through a network of 157 branches and 3,294 team members.
Financial Highlights
Ahli United Bank is well on course to achieving its growth and regional expansion objectives through the combined resources of experienced staff, solid capital and advanced technologies
- 8 countries
- 157 branches
- 3,294 employees
Net Profit US$'000s
607,244
Loans and Advances
Us$'000s
22,075,148
Total Assets US$'000s
41,913,370
Shareholder Equity
US$'000s
4,469,704
Ownership in Group Entities
Financial Highlights
Net Profit
US$'000
607,244
Total Assets
US$'000
41,913,370
Loans and Advances
US$'000
22,075,148
Shareholder's Equity
US$'000
4,469,704
Financial Highlights
Transformation
in action: people
hiring the best and
in action: people
hiring the best and
brightest talents
An award winning bank
for our people and
culture
3,294 committed
employees across
8 countries
Hiring the best
young talent in the
region
Board of Directors' Report
Board of Directors
MESHAL ABDULAZIZ ALOTHMAN
(Non-Executive Director)
Chairman of the Board and the
Executive Committee
Director since 19 February 2019
Holds a Bachelor of Science, Marketing with a Minor in International Studies from the University of South Florida, 1996.
Chairman of the Board of Directors, Ahli United Bank (UK) plc, UK; Director General, The Public Institution for Social Security, Kuwait; Member of The Board of Directors, The Public Institution for Social Security, Kuwait; Chairman of The Board of Directors, Wafra Intervest Corporation, Bermuda; Member of The Board of Directors, The Industrial Bank of Kuwait, Kuwait; Member of The Awqaf Affairs Council, Kuwait Awqaf Public Foundation, Kuwait; Chairman of the Board of Directors, Kuwait Medical City Co., Kuwait.
Former positions: Deputy Director General for Investment and Operations, The Public Institution For Social Security, Kuwait; Chief Investment Officer, The Public Institution For Social Security, Kuwait; Member of The Board of Directors, Kuwait Ports Authority, Kuwait.
He has held many key positions in the investment department for 20 years in the Kuwait Fund for Arab Economic Development.
25 years of experience covering financial services and investments.
MOHAMMAD JASSIM AL-MARZOOQ
(Non-Executive Director)
Deputy Chairman of the Board and a
Member of the Executive Committee
Director since 27 March 2006
Holds a Bachelor of Commerce-Finance Major from Kuwait University, 1991.
Chairman, Tamdeen Holding Group, Kuwait; Chairman, Tamdeen Shopping Centers Co., Kuwait; Chairman, Tamdeen Bahraini Real Estate Co., Bahrain; Partner and Manager of Ahli United Co., Kuwait; Honorary Chairman of Arabian Horse Centre (Kuwait State Stud), Kuwait; Member of Advisory Committee of National Fund for Small and Medium Enterprise Development, Kuwait.
Former positions: Member of Silk Road City & Islands Authority, Kuwait; Deputy Chairman and Member of the Audit & Compliance Committee of Ahli United Bank Limited, Dubai; Member, The Supreme Council for Planning and Development, Kuwait; Chairman of the Board of Trustees Arabian Horse Centre (Kuwait State Stud), Kuwait; CEO, Tamdeen Real Estate Co., Kuwait; Chairman and CEO, Tamdeen Real Estate Co., Kuwait; Board Member, Global Omani Development & Investment Co., Sultanate of Oman; Board Member, Al Maalem Holding Co., Bahrain; Board Member, Fateh Al Khear Holding Co., Kuwait; Board Member, Ahli United Bank, Bahrain; Deputy Chairman, Tamdeen Shopping Centers Co., Kuwait; Vice Chairman, Tamdeen Investment Co., Kuwait; Board Member, Ahli United Bank (Former Bank Of Kuwait and Middle East), Kuwait; Board Member, Al-Ahli Bank of Kuwait, Kuwait; Board Member, Kuwait National Cinema Co., Kuwait; Board Member of Arab Financial Consulting Co., Kuwait; Chairman and Managing Director, Tamdeen Real Estate Co., Kuwait; CEO, Real Estate Investment Fund, Kuwait; and Board Member, The Public Warehousing Co., Kuwait.
30 years of experience, covering financial services and real estate sectors.
MOHAMMAD FOUAD AL-GHANIM
(Non-Executive Director)
Member of Executive Committee
Director since 29 March 2003
Holds a degree, in Business Administration from Kuwait University, 1993.
Vice Chairman and Group Chief Executive Officer of the Fouad Alghanim & Sons Group of Companies which includes several companies in various fields, Kuwait; Chairman, Ahli United Bank (Egypt) SAE, Egypt; Chairman, Fluor Kuwait Co. KSC, Kuwait. Formerly: Board Member, Ahli United Bank Limited, Dubai.
Mr. Alghanim is a respected member of the international business community including World Economic Forum (WEF), The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.
He is an active member in various business forums in Kuwait and abroad. He is also personally associated with various philanthropic activities particularly with a focus on children’s health, education and refugees.
32 years of experience covering corporate management operations, contracting, manufacturing, trade, real estate and financial.
ABDULGHANI M.S.Y BEHBEHANI
(Independent Director)
Chairman of the Audit & Compliance Committee and the Nominating
Committee and a Member of the Compensation Committee
Director since 29 March 2016
Holds a Bachelor of Science in Mechanical Engineering from Kuwait University, 1984.
Vice Chairman, Noor Financial Investment Co. KSC, Kuwait; Board Member, Al-Alfain Printing, Publishing & Distribution Co. KSCC, Kuwait; Board Member, Kuwait Insurance Co. SAK, Kuwait; Board Member United Beverage Co. KSCC, Kuwait; Chairman, Noor Jordan Kuwait Financial Investment Co., Jordan; Chairman, Hotels Global Group, Jordan; Director, Mohammad Saleh & Reza Yousuf Behbehani Co. W.L.L, Kuwait; Director, Behbehani Capital Co. for Selling & Purchasing Shares & Bonds W.L.L, Kuwait; Manager, Shereen Motor Company W.L.L, Kuwait; Manager, Behbehani Tire Center Company SPC, Kuwait. Former Board Member, Al-Ahli Bank of Kuwait KSCP, Kuwait.
38 years of experience covering financial services, trade, engineering and real estate sectors.
AHMAD GHAZI AL-ABDULJALIL
(Non-Executive Director)
Member of the Audit & Compliance Committee and the Nominating
Committee
Director since 29 March 2016
Holds a Master’s Certificate in Project Management from The George Washington University, School of Business, 2009; Certified Investment and Derivatives Auditor, 2009; Certified International Financial Accountant, 2014; Certified Professional Internal Auditor, 2015; Certified Merger & Acquisition Specialist, 2016; Certified Enterprise Risk Manager, 2020; Certified Banking and Credit Analyst, 2021; Certified Finance Specialist 2021; Investment Diploma from American University of London, 2009; Bachelor of Political Science from Kuwait University, 1999; Associate’s Certificate in Project Management from The George Washington University, School of Business, 2008.
Financial Advisor to Director General, The Public Institution for Social Security, Kuwait; Board Member, Petro Link Holding Co. (K.S.C.C), Kuwait; Vice Chairman, Kuwait Medical City Co. (K.S.C.C), Kuwait; Member of The International Centre for Settlement of Investment Disputes (ICSID) Panels of Arbitrators and of Conciliators, Washington D.C. Formerly: Advisory Board Member, Markaz Real Estate Fund, Kuwait; Board Member, Al Salmiya Group for Enterprise Development Co. (K.S.C.C), Kuwait; Chairman, United Marketing and Organizing Exhibitions (K.S.C.C), Kuwait; Vice Chairman, Arab Gulf Company for food & Supermarket (S.A.K.C),Kuwait.
23 years of experience covering financial services, trading, real estate and manufacturing sectors.
ABDULLAH Mudhaf AL MUDHAF
(Independent Director)
Chairman of the Compensation Committee and a member of the Audit
& Compliance Committee and Nominating Committee
Director since 29 March 2018
Holds a Bachelor Degree in Arts Business Administration (E-Commerce & Info System) from Seattle University USA, 2005.
Managing Director and Partner, AM Holding Group, Kuwait; Executive Director, Ruby’s Café Restaurant Management and Catering Services, Kuwait; General Manager, Big Bang Restaurant Management and Catering Services, Kuwait, and General Manager, Flain Gulf General Trading Company, Kuwait. Formerly: Independent Board Member, YIACO Medical Company, Kuwait; Senior Director, International Brokerage Division, Kuwait & Middle East Financial Investment Company (KMEFIC), Kuwait.
16 years of experience covering financial services and entrepreneur – private sector development.
JAMAL ABDEL RAZZAQ AL-NAIF
(Independent Director)
Member of the Audit & Compliance Committee, the Nominating
Committee and the Compensation Committee
Director since 29 March 2018
Holds Bachelor of Science Degree in (Economics) from Bradley University, USA 1980.
Independent Director, Lakemore Partners (DIFC) Limited, Dubai. Formerly: Regional Head, Middle East, Africa & Central Asia, Pictet Asset Management, DIFC, Dubai; Managing Partner, Safanad SA DIFC, Dubai; Managing Director, Regional Head, MENA, Credit Suisse Asset Management, Dubai; Member of Credit Suisse MENA Operating Committee, Dubai; Managing Director, Regional Head MENA, Citi Alternative Investments, Citibank N.A. London; Founder and Managing Partner Al-Naif Consulting, Amman, Jordan; Head of Middle East Fixed Income Sales, Lehman Brothers, London; VP, Head of European and Middle East Sales, Head of Emerging Market Sales Europe, Member of Citibank Global Capital Markets Committee, Citibank N.A., London; VP, Head of Corporate Treasury, Gulf International Bank B.S.C., Bahrain; AVP, Middle East Currencies Trading and Head of Corporate Treasury Desk, Citibank N.A. Bahrain, Executive Trainee, Citibank N.A. Treasury, Bahrain.
41 years of experience in financial service sector.
KHALID MOHAMED NAJIBI
(Non-Executive Director)
Member of Executive Committee
Director since 23 April 2019
Holds a Bachelor Degree in Business Administration (with major in Finance) from BA Schiller International University, UK, 1990; Passed CPA 1993 ( from The American Institute of CPA) USA.
Founding Member and Managing Director, Najibi Investment Co. B.S.C(c), Director/Co-Owner, Al Souq Group W.L.L., First Vice Chairman, Bahrain Chamber of Commerce and Industry (BCCI) (NGO), Board Member, Social Insurance Organisation (SIO), Chairman, Osool Asset Management B.S.C. (c), Chairman, Bahrain Marina Co., Board Member, Ahli United Bank (UK) PLC, Board Member, Bahrain Tourism and Exhibitions Authority (BTEA), Kingdom of Bahrain; Board Member, King Fahad Causeway Authority (KFCA) and Board Member of Arab British Chamber of Commerce (ABCC).
Former positions: Vice Chairman, Managing Director/ Chief Executive Officer, Capital Management House B.S.C. (c), Vice Chairman of Ibdar Bank, Board Member, & Chairman of Executive Committee of Bahrain Islamic Bank, Board Member of Gulf Finance House, Board Member of First Energy Bank, Board Member of QInvest Regulated by QFC in Qatar, Board Member & Member of Executive Committee of Arbah Capital Regulated by CMA in Kingdom of Saudi Arabia. Also, Board Member & Chairman of Executive Committee of Crown Industries & Bahrain Scrapmould, Board Member of Skaugen Gulf Petchem Carriers.
31 years of experience covering investments & real estate development, Islamic banking both wholesale and retail.
ADEL A. EL-LABBAN*
(Executive Director)
Member of Executive Committee
Director since 30 July 2000
Holds a Masters in Economics (Highest Honors) from the American University in Cairo, 1980, Bachelors in Economics (Highest Honors) from the American University in Cairo, 1977.
Group Chief Executive Officer, Ahli United Bank B.S.C., Bahrain; Deputy Chairman, United Bank for Commerce & Investment S.A.C., Libya; Director, Ahli United Bank (UK) PLC; and Director, Ahli United Bank K.S.C.P., Kuwait.
Former positions: Chief Executive Officer and Director, United Bank of Kuwait P.L.C., UK; Managing Director, Commercial International Bank, Egypt S.A.E.; Chairman, Commercial International Investment Company, Egypt; First Deputy Chairman, Ahli Bank S.A.O.G., Oman; Vice Chairman, Middle East Financial Investment Co., Saudi Arabia; Deputy Chairman, Ahli United Bank S.A.E., Egypt; Deputy Chairman, Commercial Bank of Iraq; Director, Ahli United Bank Limited, UAE; Vice President, Morgan Stanley, USA; Assistant Vice President, Arab Banking Corporation, Bahrain; Director, Bahrain Bourse, formerly Bahrain Stock Exchange; and Director, Bahrain Association of Banks, Bahrain.
43 years of experience in financial service sector.
* Mr. El-Labban resigned from the AUB B.S.C. Board of Directors and his position as Managing Director with effect from the close of business on 14 April 2022.
Transformation
in action: data
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Chairman's Statement
“Our continued digitalization initiatives, as part of the Transformation Plan for the Group, have already strengthened operational efficiencies and delivered of customer service enhancements.”
On behalf of the Board of Directors, I am pleased to report an excellent AUB Group performance for the year 2021.
In general, the global economic outlook has improved over the last year. As per the World Bank, the global economy grew 5.5% in 2021 as compared to a contraction of 3.4% in the previous year. However, the recent conflict in Ukraine has cast a shadow over international trade which is having ramifications on the global economy. In addition, the threat of any new variants of Covid-19 also continues to be present on the global economic recovery. Global economic growth rate is expected be 4.1% in 2022 as per the World Bank whereas the MENA region is expected to grow by 4.4%.
The Group recorded a net profit attributable to its equity shareholders of US$607.2 million in 2021, an increase of 34.3% over the previous year. Basic and diluted earnings per share in 2021 improved to US 5.6 cents compared to US 4.1 cents in 2020. Significant increase in return on average equity was achieved to 13.9% from 10.4% in 2020 and return on average assets to 1.6% from 1.2% in 2020. The results are a testament to the resilience of well-managed business model of AUB Group based on market diversification and cross-border flows, supported by a robust risk management system and an intelligent spend approach. The Board of Directors has recommended a cash dividend of US cents 3.0 per share, accompanied by a bonus ordinary share issue of 10%.
Despite the continuing challenges posed by regional and international events, the Group remained committed to its philosophy of priority of service to clients. Our continued digitalization initiatives, as part of the Transformation Plan for the Group, have already strengthened operational efficiencies and delivered of customer service enhancements. We will continue to further integrate our focused and multi-faceted approach in key areas of digital, data, and human resources transformation.
In terms of activity in the capital markets, the Group’s Kuwait subsidiary successfully concluded a perpetual Tier-1 Sukuk-2021 Issue for US$ 600 million following the recall and full redemption of its earlier US$ 200 million perpetual Tier-1 Sukuk -2016 Issue. At the parent bank level, a US$ 600 million long term senior Sukuk was also oversubscribed by a wide array of regional and international investors, underlining AUB’s strong credentials as a leading market player and counterparty.
It is gratifying to note that the Group has been honoured with several prestigious industry recognized awards in 2021 including Best Bank in Bahrain by Euromoney, The Banker and Global Finance and as well as the Most Innovative Bank in the Middle East by EMEA Finance to name a few.
As Chairman of the Board, I am grateful for the continued support, trust, and confidence of our shareholders and business partners. To the regulators in each of our operating jurisdictions, their guidance and engagement are appreciated. As in all years, our management and staff remain the key element to all our success, with their unstinting effort and attention to every one of our objectives.
Meshal AbdulAziz
Alothman
Chairman
Group Chief Executive Officer’s Statement
“The Group continues to forge ahead on its multi-faceted Transformation Plan to deliver customer-centric data driven automated process solutions.”
The adverse impact brought on global economies due to Covid-19 pandemic in 2020 eased to some degree towards the later part of 2021.
The emergence of the Omicron variant, although seemingly more viral, has created less negative impact than the previous variants as governments adopted a more relaxed approach in terms of its management.
The AUB Group successfully met the challenges and performed very well with a 34.3% rise in net profit to US$ 607.2 million in 2021, principally supported by credit growth on account of the gradual opening of the economies where we operate, as well as our continued focus on effective balance-sheet management. Net interest income rose by 9.1% to US$ 871.8 million, primarily due to a well diversified asset mix providing strong asset growth and a controlled reduction in funding costs for the Group. The cost to income ratio was steady at 29.5%, continuing to be a core mainstay of the AUB Group’s well-managed business model. In a difficult market, asset quality has been enhanced during the year with the non-performing loans ratio improving to 2.4% compared with 2.6% in 2020 with very solid provision coverage levels.
The Group continues to forge ahead on its multi-faceted Transformation Plan to deliver customer-centric data driven automated process solutions. Our increased use of digitalisation across the business functions and lives continues to improve the customer experience. The revamped B2B and corporate internet banking portals have been well received, offering our customers superior and differentiated products. The very highly automated customer-centric and seamless product suite offering encompasses superior solutions for loans, trade finance, payments, cash and liquidity management.
The Group continued to strengthen its regional presence by increasing the stake in the Iraq subsidiary, Commercial Bank of Iraq, from 75% to 80.3% during March 2021. In 2022, we confirmed the acquisition of the Citibank retail assets and liabilities in Bahrain subject to completion of necessary and statuary requirements. The transaction is expected to have a major transformative impact on our retail competitive position in terms of client range and product diversity.
International credit ratings continue to re-affirm the Group’s excellent ratings. AUB is rated ‘A’/Stable by Capital Intelligence, ‘BBB’/Stable by S&P and ‘BB+’/ Stable by Fitch.
Going forward, the Group will continue to focus on organic growth, together with inorganic growth where appropriate, in order to further strengthen its position as a leading regional bank.
We will continue to apply the highest level of risk management and governance across all of our businesses.
Finally, I would like to record my appreciation for the sustained efforts from the management team and staff, who are at the heart of the success of the AUB Group and have delivered another year of exemplary performance despite challenging market conditions.
Adel A. El-Labban
Group Chief Executive Officer